Work · Your first weeks on the job
Reading your pay stub
Gross pay is what you earned. Net pay is what lands in your account after taxes and deductions. Check your hours, your rate and each deduction every payday.
Do it like this
- Check the pay period, your hours and your rate. Mistakes happen, and you're the one who'll notice.
- Find gross pay: everything you earned before deductions.
- Find the taxes. Federal income tax withholding comes from your W-4. Social Security is 6.2% and Medicare is 1.45% of your wages for the employee share. Source: IRS You may also see state and local taxes.
- Find other deductions, like health insurance or retirement contributions. Source: consumer.gov
- Find net pay, your take-home pay, and make sure it matches what hit your bank account.
See it done
Anatomy of a paycheck Khan Academy · Length 5:40 · 2023
Video blocked on this network? You don't need it. The written steps are the whole lesson, and the video is extra. Watch it on YouTube later.
If it doesn't work
- If payroll doesn't fix a wage error, put your request in writing and keep copies of your stubs and your own record of hours.
- If you're paid less than minimum wage or not paid overtime you're owed, the U.S. Department of Labor's Wage and Hour Division enforces those rules. Source: U.S. Department of Labor
- If federal tax withholding looks too high or too low, update your W-4. See Filling out a W-4.
Good to know
Keep them a year
Consumer.gov suggests keeping pay stubs for a year. Once your W-2 matches, you can shred that year's stubs. Source: consumer.gov
Why less comes home
The law requires employers to withhold for federal and state taxes and for Social Security and Medicare (FICA). Source: consumer.gov
Direct deposit
With direct deposit, you get your money right away and don't pay check-cashing fees. Source: consumer.gov
Sources
- Internal Revenue Service Topic no. 751, Social Security and Medicare withholding rates
- Federal Trade Commission Your paycheck explained (consumer.gov)
- U.S. Department of Labor Fair Labor Standards Act
Lesson W4.2 · Last checked October 2, 2026 against the sources listed.
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